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Ecuador Raises Tariffs on Colombian Imports to 50%

by Daisy Mae D.
02/27/2026
in Tariffs & Duties

Ecuador has announced that it will increase tariffs on imports from Colombia from 30 percent to 50 percent beginning March 1. The measure follows an earlier 30 percent tariff imposed in early February.

The decision was confirmed by the Ecuadorian government in Quito and comes amid ongoing trade and security-related tensions between the two neighboring countries.

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President Daniel Noboa has called on Colombian President Gustavo Petro to strengthen border security cooperation. Ecuadorian officials have cited concerns over cross-border crime and narcotics trafficking, as well as what they describe as insufficient coordination on security measures.

Colombia has long been a major global source of cocaine, and Ecuador has experienced a rise in violent crime in recent years. According to the Organized Crime Observatory, Ecuador recorded a homicide rate averaging approximately one per hour last year.

In addition to security concerns, Ecuador has pointed to economic factors behind the tariff increase. Government data show that Ecuador maintains a trade deficit with Colombia of approximately $1.03 billion through 2025, excluding oil.

Data from the Observatory of Economic Complexity indicate that nearly 4 percent of Colombian exports—valued at about $2.13 billion—are destined for Ecuador, including medicines and pesticides. By contrast, around 2.3 percent of Ecuador’s exports, worth roughly $863 million, are shipped to Colombia.

It remains unclear whether the new 50 percent tariff will apply to electricity imports from Colombia. Following the earlier tariff increase, Colombia suspended energy sales to Ecuador. The move carries potential implications for Ecuador’s power supply, as hydroelectric facilities account for nearly 70 percent of its electricity generation. Recent drought conditions have disrupted output from dams, contributing to periodic power outages.

Energy trade has been a key component of bilateral relations, with Ecuador previously purchasing electricity from Colombia during periods of domestic shortfall.

Oil transit has also been affected. Ecuador raised transit fees by 900 percent for Colombian crude transported through the Trans-Ecuadorian System Oil Pipeline, increasing costs to about $30 per barrel. In response, Colombia halted oil shipments via the pipeline.

Diplomatic discussions between officials from both countries have taken place in recent weeks, but no agreement has been announced.

In a statement accompanying the tariff decision, Ecuador’s Ministry of Production and Foreign Trade said Colombia had not implemented “concrete and effective” measures to address drug trafficking along the shared 586-kilometer border.

#SupplyChainNews #TradeUpdate #LatinAmericaNews #EnergyMarket #GlobalTrade

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